PVH, parent company of Tommy Hilfiger and Calvin Klein, is selling three brands.
PVH Corp. continues to slim down amid an increased focus on its two powerhouse brands: Tommy Hilfiger and Calvin Klein.
PVH is selling its Warners, Olga and True & Co. businesses to Basic Resources, a privately owned company that manufactures and distributes apparel for consumer brands, in an all-cash deal for $160 million. Basic Resources will also pay an up to $10 million earnout based on net sales this year.
The transaction, which is expected to close at the end of November, comes less than a week after PVH tapped global retail veteran and H&M executive Lea Rytz Goldman as global brand president of Tommy Hilfiger.
“This transaction is an important next step as we continue to accelerate our focus under the PVH+ Plan to build our core brands, Calvin Klein and Tommy Hilfiger, into the most desirable lifestyle brands in the world,” said Stefan Larsson, CEO of PVH. “We know the Basic Resources team well as a longstanding PVH partner and are confident they are the right company to help grow these brands and ensure their continued success over the long term.”
During the past several years, PVH has unloaded several of its businesses, including Heritage Brands, which included the Izod, Van Heusen, Arrow and Geoffrey Beene brand trademarks.
“We are thrilled to bring the Warners, Olga and True&Co brands into our portfolio of leading consumer brands said Salomon Harari, CEO of Basic Resources. “Under these powerful brands, PVH has built a business that offers innovative, solution-oriented products that strongly resonate with consumers. We look forward to welcoming the team and leveraging our resources and expertise in the market to drive continued growth by offering customers well-designed, high-quality products.”
PVH intends to use the net proceeds from the transaction to repurchase shares of its common stock.
Solomon Partners, L.P. is serving as exclusive financial advisor and Lowenstein Sandler is legal counsel to PVH on the transaction. Sills Cummis & Gross is legal advisor to Basic Resources.